PRIME MINISTER BALKENENDE: Well, ladies and gentlemen, good
morning. It's very good that you're here. But in the first place, I
would like to say to the President of the United States, be welcome in
The Netherlands. We really enjoy that you're here. It's an important
day that you're in The Netherlands today, because on the 6th of May --
that's what we call our Liberation Day -- and we always think about our
freedom. And at your last event, you said a lot about importance of
freedom and democracy, and you realize what Americans meant for the
European countries after the second world war. During the second world
war, your people were here, but after, you helped us.

And it's very important that you're here today and that you'll have
the meeting in Margraten. It's so important to be there, and also for
us to show our respect and to say thanks for what all the Americans
have done for The Netherlands.

We already had a breakfast meeting. We talked about some very
important issues. We talked about the Middle East peace process. We
talked about the struggle against terrorism because we are -- we have
the same position. It's a threat to world society. We have to work
together. We talked about the situation in Iraq and Afghanistan. We
talked about China and some other issues. We talked about political
situation in The Netherlands and the United States. It was a very
fruitful and interesting meeting.

Mr. President, it's great that you're in The Netherlands. We
appreciate very much that you're here today and that we have the
meeting in Margraten. But also today, we have a meeting with students
and we thank you for being here and be willing to have a discussion
with these young people. It's very important, always challenging and
encouraging if you have the meeting with the students.

And now, Mr. President, I give you the floor.

PRESIDENT BUSH: Thank you, Mr. Prime Minister. It's an honor to
be in The Netherlands. Laura and I have been really looking forward to
coming to your beautiful country. I want to thank you for the meeting
we just had. It was a fruitful discussion. I appreciate your
leadership, appreciate your friendship.

You know, I will be honoring a generation that made enormous
sacrifices so that my generation could grow up in a free world. I'm
really looking forward to going to the cemetery and paying homage to
those who fought for freedom. It will be a solemn occasion, but an
important moment to reflect upon. And I look forward to talking to the
next generation about the responsibilities that you'll have to make
sure the communities in which you grow up are hopeful communities and
this country in which you love is a free country.

I want to thank you all for coming. I'm honored that you took time
out of your life to come and have a visit with me. There's nothing
like a young generation of Americans to keep an old guy -- I mean,
young generation of citizens to keep an old guy like me feeling young.

But, Mr. Prime Minister, again, thanks for your hospitality. I
want to thank Her Majesty, as well, for joining Laura and me today.
It's awfully -- awfully kind of her to do so. Thank you.

PRIME MINISTER BALKENENDE: Thank you, Mr. President. Now the time
is for the students. Looking to the relationship between the United
States and The Netherlands, it's good to say that many things are
uniting us, but also sometimes you have some decisions that's also
possible and that's also good for the debate. And maybe it's good now
to give the floor to you, and maybe it's good to start with Miss
Madeline Hoffmeister (phonetic).

Q Thank you, very much. Mr. President, I have a question
relating of concerning the terrorism. And you made many laws after
9/11, many -- many laws and many measures. And I'm wondering, will
there be a time when you drop those laws and when you decrease the
measures?

PRESIDENT BUSH: No, I appreciate that question. Look, a free
society such as ours, obviously, must balance the government's most
important duty, which is to protect the American people from harm with
the civil liberties of our citizens. And every law we passed that was
aimed to protect us in this new era of threats from abroad and the
willingness for people to kill without mercy has been scrutinized and,
of course, balanced by our Constitution. But the question really is,
can a transparent society openly deal with a debate about civil liberty
versus the tension of protecting ourselves. And I believe we have done
so in good balance in America. But we're constantly reevaluating law.

The Patriot Act was passed. It was a very important measure to
enable our law enforcement officials to share information which they
weren't able to do at times, to be able to protect ourselves. And yet,
Congress is now evaluating certain aspects of that law. That's what
happens in democracies, and stands in stark contrast, by the way, to
societies that are closed and non-transparent, where people don't get
to determine the course of action.

And so, to answer your question, it depends upon what Congress says
and whether or not I agree with it, because I have the right to veto
any law, as well. Of course, they have the right to override my
veto. But I feel comfortable in telling you that we've been able to
successfully balance the civil liberties of our citizens with the
necessary -- the necessity to protect ourselves.

Listen, one of the interesting things about September the 11th that
I want you to understand as we have this discussion is that I fully
understand that for some, September the 11th was an important moment
and a terrible moment -- and we appreciate the condolences of the
people of The Netherlands -- but for us it was a change of attitude. I
mean, it changed a lot about how I looked at the world, and a lot of
Americans, it changed how they looked at the world. I mean, it was
more than just an attack; it was a whole mind-set. And that's why your
question is really relevant -- did that mind-set, did that change of
attitude cause us to then begin to take away certain civil liberties,
and I would argue, it did not.

Q I've a question about the reason you are here. We are
honoring the soldiers who died in the second world war. In the years
later, America was involved in a lot of conflicts, in a lot of wars.
What's the benefit when you can ask to your people -- you are, in the
first place, President of America, you're responsible for your own
people --

PRESIDENT BUSH: Right --

Q -- what can you ask from your people, not only the dead and
the wounded, but also economic consequences? Last week I received a
brochure about raise funding for U.S. aid for poor people. So what --

PRESIDENT BUSH: You received -- I beg your pardon -- received a
brochure for?

Q -- raise funding for poor people --

PRESIDENT BUSH: Oh, to raise funding, yes.

Q -- the economic consequences of all this involvement in
conflicts, what's the balance between the responsibility to the world
and the responsibility to your own people?

PRESIDENT BUSH: I think we have a responsibility to both. And at
home, of course, economic vitality is really important, and to make
sure the entrepreneurial spirit is alive and well. Seventy percent of
new jobs in America are created by small business owners, which is --
it speaks to our -- the environment of encouraging entrepreneurship,
which means less lawsuits and good tax policy and less regulations. A
vibrant, growing economy is one which we collect more revenues, and
therefore, we're more capable of helping and doing our duty to those
who can't help themselves.

And that's the interesting balance of a free society, by the way,
is the extent to which the welfare state is prevalent. And I believe
we -- government has a role to help those who cannot help themselves,
and then encourage people who can help themselves to realize dreams to
good education and good policy.

Abroad, we have a responsibility, as well. First, let me just tell
you, the hardest decision a President makes is war. Nobody wants to be
at war. Nobody. Now the question is, how do we spread peace. And one
way you spread peace is spread democracy. That's the lesson of World
War II. If that thought troubles you we can discuss this a little
more. But the lesson of World War II, at least, was that by spreading
democracy throughout Europe, that Europe at last became whole, peace --
free, whole and at peace. That's the lesson that people at least ought
to take away from the experience of the last 60 years. I believe it
applies to the next 60, as well.

But we have other duties, as well -- HIV/AIDS, for example, in the
continent of Africa is a pandemic that has got to be appalling to the
free world. And my government is spending $15 billion as part of a
global effort to help -- help defeat HIV/AIDS. We feed more of the
hungry than any nation, and it's an obligation we readily accept. But,
as well, as we work to help those who hurt, we also have got to put
practical policies in place.

And that's why I'm such a believer in free trade, because trade
ultimately -- the benefits of trade, the benefits of economy, the
benefits of growing businesses far exceed the capacity of governments
to hand out aid to people. And so, in Africa, for example, we've got a
policy of feeding the hungry and providing money for help, but we've
also got a free trade policy with Africa, which is helping these
economies grow, which provides opportunity and hope for people that are
living in those countries. So we have a balanced obligation at home
and abroad.

Thank you, sir.

PRIME MINISTER BALKENENDE: We'll give the press a minute to do
other things, and we can go on with our discussion.